Call Reports to Track Loan Purchases, Service Unit Ledger

The federal government has changed its 1996 call reports to monitor risks in credit union loan participations and subsidiary companies.

Starting this quarter, credit unions must report the number and amount of loans they have purchased from other institutions and reveal how much they earned or lost from their service organizations.

The two modifications, announced last month in a letter to all credit unions, are among seven major changes the National Credit Union Administration is making to its quarterly disclosure forms.

The regulator is keeping a closer watch on the buying and selling of loans because in November the agency eased its loan participation rules, said Herbert Yolles, director of risk management for the regulator.

Few credit unions currently buy one another's loans, but the agency is betting that activity will pick up, thanks to the relaxed rules.

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